Report: Xbox intends to close several studios at once

Microsoft’s gaming division may undergo significant “downsizing.” As reported by Bloomberg journalist Jason Schreier, XBOX is preparing to part ways with at least three teams.

Senua

According to Schreier, the threat of closure looms over:

• Compulsion Games — creators of Contrast, We Happy Few, and South of Midnight;
• Double Fine Productions — creators of Psychonauts and many other games. Their latest project to date is Kiln;
• Ninja Theory — creators of Hellblade. Notably, just a week ago, they announced the third installment of the series — Senua.

If Schreier’s sources are to be believed, all three studios are currently negotiating with Microsoft, hoping to avoid closure. They aim to buy themselves out from the corporation and gain independence. However, the journalist adds, even in such a case, there will be sacrifices — major layoffs will still occur within the studios.

It is claimed that XBOX might go further and close several more studios. According to Schreier, even the most commercially successful teams are unsure of their future. They fear they might suffer due to Asha Sharma’s, head of XBOX, desire to increase the division’s profitability by focusing on the biggest franchises. These details are confirmed by Mike Straw from Insider Gaming — he also found out that Arkane Lyon, which is currently working on Marvel’s Blade, is on the list of potential candidates for closure.

Recall, The Information earlier reported the risk of a large-scale restructuring of XBOX. It is suggested that Microsoft could turn the division into a separate subsidiary, which it would own either solely or jointly with someone else. The possibility of a complete sale of XBOX is also not ruled out.